US house prices increased by 2.9 per cent in June, registering the second consecutive month of growth, the Standard and Poor’s / Case-Shiller national home index has revealed.
The rise comes on the back of a 15 per cent drop over the past year.
According to the index, despite the recent increases house prices have fallen more than 30 per cent since their peak in the second quarter of 2006.
Last week, mortgage applications rose to their highest level in almost three months led by gains in refinancing and purchases.
Data from the Mortgage Bankers Association showed applications to purchase or refinance a loan increased 7.5 per cent in the week ended 21 August.
The increase in home loan applications and house prices has economists forecasting a quicker than predicted recovery.
It is thought that the rising prices may boost consumer spending and force homebuyers who have been sitting on the fence waiting for a bottoming of prices to come back into the market.